If you’re comfortable with a bigger investment, a duplex is good for the benefit of additional cash flow and you could house-hack.

Agreed - plus two additional thoughts:1) I always recommend having your CPA also review the drafted operating agreement for the tax issues. 

I recently completed one on a multifamily property and found it to be a cost-effective approach.That said, there are a couple of additional factors to consider beyond the code differences between a garage conversion and new construction:Coastal Overlay Zones – If your property is in a coastal overlay, building a ground-up ADU may require Coastal Commission review, which can add time and complexity to the process.

Hopefully you have a better streamlined build on the next one.Its a part of the processWe'll be more efficient as time goes onThanks for the feedback!

Additional Considerations: Costs & Market Changes•Ongoing Maintenance & Housekeeping: STRs require regular deep cleaning, restocking of supplies, and maintenance.

Electing disregarded entity status avoids additional filings while achieving the same tax outcome.This post does not create a CPA-Client relationship.

If you live in CA, NY, Boston etc - the financial difference is big enough.Investing in your home town is always best, you have the home-field advantage and you can buy, rehab and manage a lot more efficiently.

Insurance must be in place on the property, with the seller as additional insured.6.

I've owned the house for few years and have spent a lot of time trying to design an addition to add value to the property, but the current floor plan is really not conducive to realizing a return on that investment (tiny living room, low ceiling basement, poorly placed basement stairs, etc.). 

They charge $1250 for properties under $1mm for a 1 to 1 exchange and if you have another property to move your funds into, they charge $550/additional property.